Buy Anant Raj; target of Rs 800: Emkay Global Financial

Emkay Global Financial' research report on Anant Raj

We expect operations to start over the next 3-4 months, with annualized occupancy at ~70%, which would improve ahead. This would take the total operational DC capacity to 28MW (including 0.5MW of cloud capacity), from 6MW currently. Over the next two years, we expect DC capacity to increase to 63MW at a capex ~Rs19-20bn, which would largely be met through cash flow generated from the real estate business. The management expects DC business revenue of Rs12bn by FY27 and Rs90bn by FY32, at full occupancy. We have factored in gradual improvement in occupancy and, hence, expect DC business revenue to increase to Rs7bn in FY27E, from Rs455mn in FY25. Overall, we expect ~20% IRR for the DC business by FY45E. Accordingly, despite the delayed fundraising, expansion via internal accruals will keep the net debt low at Rs2.1bn till FY27E (currently Rs1.2bn), in our view.

Outlook

We reiterate BUY on Anant Raj, with an unchanged TP of Rs800. We visited the company’s new data center facilities in Panchkula (7MW capacity) and Manesar (21MW), in Haryana.

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Anant Raj - 08082025 - emkay